ABC Learning Centres Limited - acquisition of Just Little People child care centres (Macedon Ranges - Victoria)

Market definition

The relevant market considered by the ACCC was the market for the supply of centre-based long day child care services in an area immediately north-west of Melbourne encompassing Macedon, Gisborne, Woodend, Romsey and Riddells Creek (the Macedon region) and extending along the Calder Freeway at least to Sunbury. The information available to the ACCC suggested that a sufficient number parents would be likely to consider child care in Sunbury to be substitutable for child care in the Macedon region, particularly given information that a significant number of people living in the Macedon area travel along the Calder Freeway to, through or near Sunbury to attend work.

Competition analysis

The ACCC decided not to oppose the acquisitions in the Macedon region given the availability of child care places in the relevant market, particularly Sunbury. In addition, information before the ACCC indicated that new childcare centres had recently entered the market, and that further new entry was planned for the future.